The EG Company produces and sells one product. The following data refer to the year just completed:

Beginning inventory		0
Units produced		28,600
Units sold		27,300
Sales price per unit	$	495
Selling and administrative expenses:
Variable per unit	$	23
Fixed (total)	$	382,200
Manufacturing costs:
Direct materials cost per unit	$	279
Direct labor cost per unit	$	52
Variable manufacturing overhead cost per unit	$	36
Fixed manufacturing overhead	$	629,200

Assume that direct labor is a variable cost.

Required:

a.	Compute the cost of a single unit of product under both the absorption costing and variable costing approaches. (Omit the "$" sign in your response.)

	Cost per unit
Absorption costing	$
Variable costing	$

b.	Prepare an income statement for the year using absorption costing. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.)

Absorption Costing Income Statement
(Click to select) Sales Cost of goods sold Gross margin Net operating income (loss) Selling and administrative expenses	$
(Click to select) Sales Gross margin Cost of goods sold Net operating income (loss) Selling and administrative expenses
(Click to select) Cost of goods sold Sales Gross margin Selling and administrative expenses Net operating income (loss)
(Click to select) Net operating income (loss) Cost of goods sold Gross margin Sales Selling and administrative expenses
(Click to select) Selling and administrative expenses Gross margin Net operating income (loss) Sales Cost of goods sold	$

c.	Prepare a contribution format income statement for the year using variable costing. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.)

Variable Costing Income Statement
(Click to select) Variable selling and administrative expenses Manufacturing overhead Net operating income (loss) Contribution margin Selling and administrative expenses Variable cost of goods sold Sales		$
Variable expenses:
(Click to select) Fixed selling and administrative expenses Fixed manufacturing overhead Contribution margin Variable cost of goods sold Sales Variable selling and administrative expenses Net operating income	$
(Click to select) Fixed manufacturing overhead Net operating income Variable selling and administrative expenses Fixed selling and administrative expenses Variable cost of goods sold Sales Contribution margin
(Click to select) Variable selling and administrative expenses Net operating income (loss) Sales Contribution margin Variable cost of goods sold Manufacturing overhead Selling and administrative expenses
Fixed expenses:
(Click to select) Fixed selling and administrative expenses Variable selling and administrative expenses Net operating income Variable cost of goods sold Fixed manufacturing overhead Sales Contribution margin
(Click to select) Fixed selling and administrative expenses Fixed manufacturing overhead Net operating income Variable cost of goods sold Variable selling and administrative expenses Sales Contribution margin
(Click to select) Variable selling and administrative expenses Sales Variable cost of goods sold Manufacturing overhead Contribution margin Selling and administrative expenses Net operating income (loss)		$

d.	Reconcile the absorption costing and variable costing net operating income figures in (b) and (c) above. (Omit the "$" sign in your response.)

Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes
Net operating income under variable costing	$
(Click to select) Deduct Add : (Click to select) Fixed manufacturing overhead costs deferred in inventory under absorption costing Fixed manufacturing overhead costs released from inventory under absorption costing
Net operating income under absorption costing